U.S. spot Bitcoin ETFs experienced a major investor withdrawal on Friday, with $643.3 million leaving the products in their largest single-day outflow since June 25. The sell-off followed the $6.3 billion Binance hack and marked the first trading session for the funds after the security incident.
Data from SoSoValue showed that the funds had accumulated slightly more than $1 billion in net inflows since the beginning of 2026 before Friday’s reversal. The latest withdrawals removed nearly two-thirds of that amount, cutting the year’s net inflows by 63.6% and leaving the funds barely positive.
The withdrawal ranked as the 12th-largest daily outflow since spot Bitcoin ETFs launched in January 2024. The previous larger exit was recorded on June 25, when investors withdrew $696.3 million.
BlackRock’s IBIT experienced the heaviest selling, losing $233.70 million in a single day. Fidelity’s FBTC followed with $201.4 million in outflows, making the two funds the largest contributors to Friday’s decline.
Spot Bitcoin ETFs provide investors with exposure to the cryptocurrency through exchange-traded shares backed by actual Bitcoin holdings. Their daily flows are often treated as a measure of institutional demand because investors can access Bitcoin without directly purchasing or holding the coins.
Friday’s $643.3 million withdrawal also exceeded the $635.5 million outflow recorded on October 22. The sharp decline suggests investors are becoming more cautious, a trend reflected in the Coinbase premium, an indicator frequently used to track demand from U.S.-based buyers.
Bitfire Research reported that the latest redemptions reduced the combined assets under management of U.S. spot Bitcoin ETFs to $98.14 billion, taking the total below the $100 billion threshold. The firm also highlighted persistent weekly withdrawals from spot Ether ETFs.
The research firm pointed to the Coinbase premium remaining between -0.18% and -0.27%, alongside a decline in the Crypto Fear & Greed Index to a range of 30–34. These signals suggested that institutional interest and direct buying pressure in the spot market had weakened.
The $6.3 billion Binance exploit was identified as a major factor behind the sudden deterioration in sentiment. Derive, a decentralized platform focused on options trading, said the incident added to existing market uncertainty and encouraged investors to reduce risk.
Nick Forster, founder and CEO of Derive, told CoinDesk that the market was already under pressure before the breach. However, the attack intensified concerns, prompting traditional investors to pull money from U.S. spot Bitcoin ETFs during the first session following the incident.
Key events that could shape the market
Bitfire Research identified three upcoming developments that investors should monitor for potential effects on cryptocurrency prices and capital flows.
The November 3 U.S. midterm elections are the first major event. Their outcome could influence the regulatory agenda and policy environment during the final two years of President Donald Trump’s administration.
Next is the November 6 nonfarm payrolls report, which will provide an update on U.S. employment conditions for October. The figures could affect expectations for future Federal Reserve rate decisions, with potential consequences for Bitcoin and other financial markets.
The third factor is MSCI’s final determination on companies affected by its updated rules for non-operating businesses. Strategy and Metaplanet, two prominent companies holding Bitcoin on their balance sheets, have been flagged as potential candidates for removal from MSCI indexes.
An exclusion could prompt passive investment funds to sell their holdings in the companies, potentially putting additional pressure on their share prices. It could also indirectly restrict their ability to raise capital for further Bitcoin purchases.
